TKMS, the Israel Ministry of Defense and Elbit Systems Inaugurate a New Manufacturing Facility in Israel for Underwater Submarine Components

• The facility will be used to produce underwater GRP (Glass Reinforced Polyester) components for submarines

• It is the first time that submarine structural components are to be manufactured in Israel

Kiel, February 18, 2026. Elbit Systems and TKMS have inaugurated a new production line in Israel for the manufacture of underwater structural components for submarines. As part of the cooperation, Elbit Systems will establish a new manufacturing facility for underwater GRP (Glass Reinforced Polyester) components for submarines.

The facility constitutes an additional step in deepening the ties between the two companies and is part of TKMS’s industrial cooperation activities under the framework of offset procurement in Israel.

Paul Glaser, CFO of TKMS: “This is a landmark moment for TKMS in Israel. The establishment of this facility symbolizes a long-term partnership with Israel’s defense industry, built on trust, commitment, and shared values. The facility strengthens Israel’s ability to independently manufacture underwater components and creates infrastructure that will enable technological progress and deep cooperation, as part of a joint effort to strengthen stability and security in the maritime domain.”

The entire initiative is carried out under an industrial agreement between the companies, under which new production facilities will be established and advanced technologies developed based on TKMS’s knowledge and experience.

Yoram Shmuely, General Manager of the Aerospace Division at Elbit Systems: “Elbit welcomes the partnership with TKMS. This cooperation will expand local manufacturing capabilities and serve as an anchor for global activity in the underwater domain. The expansion of the plant in the Galilee, as part of the company’s policy of maintaining a strong presence in the Galilee and the Negev, will provide livelihoods for dozens of additional households and strengthen the northern economy.”

The agreement enables Elbit Cyclone to expand its product portfolio, market them in new international markets, and establish local expertise in the production of advanced underwater components – a field that has not been manufactured in Israel until now. The cooperation strengthens northern Israel as a strategic industrial and technological center. The facility’s activity constitutes a regional growth engine, integrating advanced industry, innovation, and defense manufacturing under one roof.

Ze’ev Landau, Head of the Directorate of Production and Procurement at the Ministry of Defense: “The partnership with TKMS shipyard spans many years, during which the strength of the Israeli Navy has been built and continues to be built for the years ahead. The establishment of the facility as part of industrial offset procurement constitutes part of the Ministry of Defense’s strategy to expand the defense manufacturing base as part of the lessons of the war and will assist in strengthening the IDF, promoting Israeli industries, and developing the economy . We hope that the establishment of the plant will serve as fertile ground for continued successful industrial, technological, and economic cooperation with TKMS shipyard.”

The establishment of the facility represents a significant milestone in the development and expansion of Israel’s defense manufacturing base and reflects a broad investment in advanced infrastructure and industrial innovation. The plant, located in a national priority area, is expected in its initial phase to employ dozens of workers and will contribute to strengthening the Israeli economy, creating high-quality jobs in northern Israel, and deepening the regional industrial ecosystem.

Nurit Tzur Rabino, Director of the Industry Administration, Ministry of Economy and Industry: “The establishment of the new production line for underwater GRP components constitutes a significant leap in the advanced manufacturing capabilities of the State of Israel. This is not merely the construction of a physical facility, but the implementation of some of the most advanced technologies in the world, positioning local industry at the forefront of global naval engineering. This project represents a precise integration between a critical security need and long-term industrial development in the periphery, leading to the creation of high-quality jobs and the expansion of the local supply chain. We are proud to see Israeli industry becoming an inseparable strategic and technological partner in some of the most complex and prestigious projects in the world, thereby ensuring the economic and competitive future of Israeli industry in international markets.”